Compete With Discount Real Estate Agents (Without Cutting Commission)

You’ve been there. You deliver a solid listing presentation — great rapport, strong market knowledge, confident delivery. The seller nods along, impressed. Then comes the curveball: “Well, another agent said they’d do it for less.” Sound familiar? Now, you’re competing with a discount real estate agent. 

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It’s one of the most frustrating realities in real estate today: competitors undercutting commissions just to grab a listing. And it leaves full-service agents — agents who know their worth — wondering: How do I compete with that? 

Here’s what I want you to get: You don’t compete on price. If their pitch is price, yours has to be value. Because when you lead with clarity, confidence and results, you earn the business — and more importantly, you start to create customers for life.

Race to the bottom

Let’s acknowledge the obvious: Yes, sometimes sellers do pick the lowest-fee agent. But when they do, they often get exactly what they paid for:

• Listings that expire
• Homes that sit on the market
• Weak negotiations that leave money on the table
• Spotty communication and poor representation

And when that happens? Sellers don’t feel like they “saved.” They feel burned.

That’s why you should never feel pressured to slash your fee just to match a competitor. You can’t out-discount a discount agent — but you can out-value them every single time.

Why sellers fall for the low fee

It’s easy to get frustrated with sellers who seem to only care about commission, but here’s the truth: They don’t always know what they don’t know.

• They’ve been told agents “All do the same thing.”
• They’re afraid of “losing money” on fees.
• They’ve never had anyone clearly show them the difference between service levels.

I love what my good friend Judy LaDeur says about this topic, “In the absence of value, money becomes the only issue.”

If you don’t explain what sets you apart, the seller has nothing else to compare except the fee. That’s not their fault — that’s your opportunity.

5 steps to compete with discount real estate agents (without cutting your commission)

So, how do you stand out when someone else is dangling the “cheap” card? Here are five ways to win:

1. Shift the focus to net, not commission

Sellers don’t care about commission — they care about what they walk away with. Show them how your pricing, marketing and negotiation will net them more money in their pocket than the so-called “deal.”

2. Break down the service you provide

Don’t just say you’re better — show it. Put your marketing plan, staging strategy, negotiation track record and communication plan side by side with what discount brokers typically offer. A side-by-side comparison makes the difference undeniable.

3. Use analogies that stick

Would they hire the cheapest surgeon for open-heart surgery? Or the cheapest lawyer to represent you in court? Real estate is often the single biggest financial decision of their life — it deserves expertise, not discounts.

4. Tell stories of ‘rescue’ listings

If you’ve ever taken over an expired listing that was discounted, share the story.

“This seller thought they were saving money, but the home sat for three months. When I stepped in with my full marketing plan, we had it under contract in 10 days — at a higher price.”

Real-world examples prove your point.

5. Practice until confidence is automatic

Sellers can sense hesitation. The more you role-play commission objections, the more natural it feels to respond calmly, clearly and confidently. Confidence closes gaps that discounts can’t.

The competitive edge for full-service agents

Here’s the part agents forget: In today’s commission-confused, lawsuit-loud market, you’re actually at an advantage as a full-service professional. Your definition of a full fee is what you set it to be. What you feel you are worth. The settlement changed the playing field, and you can ask for just your listing side and should. Explain how it all works, of course, but you negotiate your fee.

Why? Because smart sellers are thinking ahead. They don’t want to gamble on their biggest asset. They don’t want to “test out” a bargain broker. They want someone who will give them certainty, clarity and results.

That’s you.

So, stop looking at discount real estate agents as a threat. Start seeing them as the contrast that makes your value shine even brighter. If their pitch is price, yours has to be value.

3 daily value habits

If you want to compete confidently, make these part of your daily practice:

1. Communicate your value every day: Share a story, a stat or a client win that demonstrates results. Don’t wait until the listing presentation to prove yourself.
2. Track the numbers that matter: Days on market, list-to-sale ratio, percentage of asking price. Numbers tell a story — and yours should back up your fee.
3. Invest in yourself: The sharper your skills, the easier it is to show your value. Training, coaching, roleplay — it’s all fuel for competing with clarity instead of cutting commission.

The amazing thing about competing on value

Here’s the bonus: Once you stop fearing the “But the other agent charges less” objection, business gets a lot more fun. You’ll go into presentations excited instead of anxious. You’ll attract clients who respect you instead of clients who drain you. You’ll happily gravitate towards the tools and training that will help you master your value conversation over and over again. 

And you’ll build a reputation as the agent who’s worth every penny — not the one who gave their own pennies (and often the client’s as well) away.

I know it’s frustrating when another agent swoops in with a lowball fee. I’ve coached hundreds of agents through that same scenario, and I’ve heard every variation of “How can I compete with that?”

Here’s the answer: You don’t compete on price — you compete on clarity. Your job is to make sure sellers fully understand the difference between a discount and a professional who delivers results.

Because when you show up as the agent who communicates, educates and protects your clients, price fades into the background. And that’s when you stop chasing business and start attracting it.

If their pitch is price, yours has to be value. Always.